18 Banking companies: expenses relating to compensation
Finance (No 2) Act 2015 (2015 c 33) | Legislation

18  Banking companies: expenses relating to compensation

(1)     In CTA 2009, after section 133 insert—

“Banking companies

133A Compensation payments: restriction of deductions

(1)     In calculating the profits of a trade carried on by a company (“company A”) no deduction is allowed for expenses incurred by the company if and so far as—

(a)     the expenses are in respect of amounts of relevant compensation (see subsection (3)), and

(b)     the disclosure condition is met in relation to the expenses (see section 133C).

(2)     Subsection (1) does not apply to expenses which are excluded by section 133D.

(3)     In relation to company A, “relevant compensation” means compensation which is paid or payable—

(a)     to or for the benefit of a customer of company A in respect of relevant conduct (see subsection (6)) of company A, or

(b)     to or for the benefit of a customer of a qualifying company in respect of relevant conduct of that qualifying company (but see subsection (4)).

(4)     Compensation paid or payable as mentioned in subsection (3)(b) is not relevant compensation so far as it is paid or payable under arrangements entered into between company A and the qualifying company on arm's length terms.

(5)

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